Home NewsEconomy News Easing rate-hike bets, bank earnings lift Wall Street By Reuters

Easing rate-hike bets, bank earnings lift Wall Street By Reuters

by WOOWinvest
0 comment
Easing rate-hike bets, bank earnings lift Wall Street By Reuters



© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 13, 2022. REUTERS/Brendan McDermid

by Shreyashi Sanyal and Sruthi Shankar

(Reuters) – U.S. stock indexes rose on Monday after big banks beat earnings estimates, extending last week’s positive momentum as bets on a massive Fed rate hike eased.

Goldman Sachs Group Inc (NYSE: ) rose 2.5% after the company reported a 48% drop in second-quarter profit, missing expectations, thanks to strength in its fixed-income trading. Bank of America (NYSE: ) also rose 0.4% after quarterly profit beat analysts’ expectations.

Gains in their shares helped the bank index rose 0.6%, with trading booming amid market volatility and helping offset much of the weakness in investment banking amid mixed second-quarter results.

“You get the sense that maybe all the bad news is over and investors are looking to see if this is a reasonable entry point,” said Rick Meckler, a partner at Cherry Lane Investments.

At 12:44 p.m. ET, the S&P 500 was up 149.36 points, or 0.48%, to 31,437.62, the S&P 500 was up 28.58 points, or 0.74%, to 3,891.74 and 157.69 points, or 1.38%, to 11,610.11.

The S&P 500 technology sector index rose 1.2%, while chipmaker Nvidia (NASDAQ: ) Corp rose 6.2%.

Concerns about a 1-percentage-point rate hike at the end of July eased after Fed officials said last week that policymakers could stick to a 75-basis-point rate hike.

Earnings from big tech companies will be closely watched next week as their stocks have come under intense selling pressure for most of the year.

“I think growth stocks may outperform[in the second half of the year]because we’ve peaked in rates and maybe some disappointment on the growth side,” said Jack Ablin, chief investment officer at Cresset Capital Management.

“We also have to recognize that the Fed will pivot quickly and may actually ease in the first half of next year.”

Among other stocks, Boeing (NYSE: ) Co rose 2.1% after Delta Air Lines (NYSE: ) said it would buy 100 MAX 10 jets worth about $13.5 billion at a list price, with the right to buy 30 more . Delta Air Lines shares rose 5.9%.

With earnings season in full swing, analysts now expect S&P 500 second-quarter profits to rise 6% from a year earlier, down from the 6.8% expected at the start of the quarter, according to Refinitiv data.

The S&P 500 energy sector index rose 2.5% as crude oil rose more than $4. [O/R]

Advancing issues outnumbered declining ones on the NYSE by a 3.58-to-1 ratio and on the Nasdaq by a 2.67-to-1 ratio. The S&P posted 1 new 52-week high and 30 new lows, while the Nasdaq posted 25 new highs and 44 new lows.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy